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Are Investors Undervaluing Cars.com (CARS) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Cars.com (CARS - Free Report) is a stock many investors are watching right now. CARS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that CARS has a P/B ratio of 2.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.79. CARS's P/B has been as high as 3.44 and as low as 2.06, with a median of 2.54, over the past year.
Finally, we should also recognize that CARS has a P/CF ratio of 5.78. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.28. CARS's P/CF has been as high as 11.45 and as low as 4.70, with a median of 5.78, all within the past year.
These are just a handful of the figures considered in Cars.com's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CARS is an impressive value stock right now.
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Are Investors Undervaluing Cars.com (CARS) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
Cars.com (CARS - Free Report) is a stock many investors are watching right now. CARS is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
We should also highlight that CARS has a P/B ratio of 2.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 5.79. CARS's P/B has been as high as 3.44 and as low as 2.06, with a median of 2.54, over the past year.
Finally, we should also recognize that CARS has a P/CF ratio of 5.78. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.28. CARS's P/CF has been as high as 11.45 and as low as 4.70, with a median of 5.78, all within the past year.
These are just a handful of the figures considered in Cars.com's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CARS is an impressive value stock right now.